EX-12 2 usmexhibit12.htm EX-12

Exhibit 12

UNITED STATES CELLULAR CORPORATION

RATIO OF EARNINGS TO FIXED CHARGES

|  |  |  |  | Six Months Ended
|  |  |  |  | June 30,
|  |  |  |  | 2017 |  | 2016
(Dollars in millions) |  |  |  |  |
EARNINGS: |  |  |  |  |
| Income before income taxes 1 | $ | 73 |  | $ | 60
| Add (deduct): |  |  |  |  |
|  | Equity in earnings of unconsolidated entities |  | (66) |  |  | (72)
|  | Distributions from unconsolidated entities |  | 65 |  |  | 30
|  | Amortization of capitalized interest |  | 3 |  |  | 3
|  |  |  |  | $ | 75 |  | $ | 21
| Add fixed charges: |  |  |  |  |
|  | Consolidated interest expense 2 |  | 56 |  |  | 56
|  | Interest portion (1/3) of consolidated rent expense |  | 27 |  |  | 26
|  |  |  |  | $ | 158 |  | $ | 103
FIXED CHARGES: |  |  |  |  |
|  | Consolidated interest expense 2 | $ | 56 |  | $ | 56
|  | Interest portion (1/3) of consolidated rent expense |  | 27 |  |  | 26
|  |  |  |  | $ | 83 |  | $ | 82
RATIO OF EARNINGS TO FIXED CHARGES |  | 1.90 |  |  | 1.26
1 | Includes $19 million and $9 million of Gain on license sales and exchanges, net in 2017 and 2016, respectively.
2 | Interest expense on income tax contingencies is not included in fixed charges.